To assist study abroad returnees in understanding relevant policies for tax-exempt car purchases and effectively utilizing the benefits, this article outlines the key considerations for such purchases. It is based on the "Notice on Relevant Issues Concerning Study Abroad Returnees Using Foreign Exchange for Personal Use Car Purchases" jointly issued by the General Administration of Customs and six other ministries and commissions.
I. What are the eligibility requirements for study abroad returnees to apply for the purchase of tax-exempt domestically-produced cars?
Study abroad returnees who have studied or conducted research for a minimum of one academic year (9 months) at accredited overseas universities (colleges) and returning to China for work are eligible for the tax-exempt car purchase policy, provided that they apply within one year of their first entry after graduation and ensure that their stay abroad does not exceed two years post-completion of their studies or research.
II. What taxes and fees can be exempted for study abroad returnees purchasing tax-exempt domestically-produced cars?
Import duties, value-added tax, and vehicle purchase tax are exempted on key parts or complete sets of components of such cars.
III. Which cars can the study abroad returnee purchase with taxes and duties exempted?
Study abroad returnees can purchase any car manufactured by state-designated car manufacturers. Cars entirely domestically-produced are excluded from the applicable scope.
IV. Where can they purchase tax-exempt domestically-produced cars?
According to related regulations, domestically produced vehicles for study abroad returnees are excluded from entering the commercial and distribution sectors. Study abroad returnees intending to purchase tax-exempt domestically-produced cars should first go through approval procedures at the competent customs office in their residence. With the "Car Purchase Approval Certificate for Study Abroad Returnees" issued by customs, they can proceed to purchase directly from state-designated car manufacturers.
V. Can returnees from Hong Kong, Macao, and Taiwan regions apply for tax-exempt domestically-produced cars?
The Chinese mainland students graduating from accredited universities in Hong Kong, China, Macao SAR, and Taiwan, China, can benefit from the preferential policy of purchasing tax-exempt domestically-produced cars.
VI. What are the criteria to confirm the identity and academic experience of study abroad returnees?
The Ministry of Education has ceased issuing the "Certificate for Study Abroad Returnees" since November 1, 2020. Returnees can now submit diplomas, degree certificates, and other documents or opt to obtain a foreign academic qualification certification from the Chinese Service Center for Scholarly Exchange.
VII. What supporting documents are required for submission during the application process?
(I) An original passport along with a photocopy;
(II) Domestic residency verification issued by the public security authority, such as the original and photocopy of the household register (including pages of the head of the household and the individual's details), or the original and photocopy of the residence permit;
(III) "Declaration Sheet for Inbound & Outbound Items for Private Use of the People's Republic of China Customs" (in quadruplicate);
(IV) Additional supporting documents are also acceptable, including the original and a photocopy of the graduation certificate, the admission notice, and other valid materials confirming enrollment dates, certifications for foreign academic degrees issued by the Chinese Service Center for Scholarly Exchange, records of entry and exit (available from the bureau of exit-entry administration or through the WeChat Immigration Bureau applet for printing travel records during the study period abroad), as well as local employment verification documents (bearing the company's official seal, along with the company's registered address and the document's issuance date); and
(V) Original Power of Attorney issued by the intermediary company (not necessary for applications in person).
Disclaimer：The above content is translated from Chinese version of Xuexi.cn. The Xuexi.cn version shall prevail.
